Batelco's H1 revenue surges to $532m

MANAMA, July 25, 2019

Bahrain's leading telecom services operator Batelco has reported strong revenues of BD201.7 million ($532 million) for the first six months, an increase of one per cent over last year.

Announcing its financial results for the first half and the second quarter, Batelco said the revenues were positively boosted by strong performance in the home market despite a challenging environment.

Similarly, the ebitda of BD74.4 million has increased 2% over H1 2018 and operating profits year-on-year have remained steady at BD40.9 million, a 1% increase over BD40.5 million in H1 2018.

Batelco’s impairment loss of BD20.3 million on its investment in its associate company in Yemen was compensated by a gain of BD27.2 million in Q2 2019 from the sale of Qualitynet, the company’s subsidiary in Kuwait, resulting in a net profit attributable to equity holders of the company of BD34 million for the first six months of 2019, 18% higher than BD28.8 million in H1 2018.

Batelco announced net profits attributable to equity holders of the company for the first six months of 2019 of BD34 million, up 18% from BD28.8 million for the corresponding period in 2018.

Similarly, net profit attributable to equity holders of the company for Q2 2019 was reported at BD19.4 million, a 24% increase from BD15.7 million for the corresponding period of 2018.

The net profit for Q2 2019 reflects a one off gain of BD27.2 million from the sale of Batelco’s 90% stake in Qualitynet. In addition, Q2 2019 net profit is impacted by a further impairment loss of BD20.3M (US$53.8M) on Batelco’s 26.94% shareholding in Sabafon in Yemen.

Sabafon has faced unique operating challenges due to the ongoing conflict in Yemen and currency decline, said the satement .

Total comprehensive income attributable to equity holders of the company is up by 54% for the first six months of 2019 from BD22.4 million to BD34.4 million with total comprehensive income for Q2 2019 reported at BD17.1 million an increase of 117% from BD7.9 million for the second quarter of 2018.

Operating profits year-on-year have remained steady with a 1% increase, and stand at BD40.9 million compared to BD40.5 million reported in H1 2018; however, operating profits are down by 6% for the quarter from BD20.2 million in 2018 to BD19.1 million.

For the six-month period, ebitda increased by 2% over the corresponding period of 2018 from BD73.0 million to BD74.4 million with a healthy EBITDA margin of 37%.

Ebitda for the second quarter of 2019 stands at BD35.8M (US$95.0M) compared to BD36.4 million in Q2 2018, representing a decline of 2%.

Batelco Chairman, Shaikh Abdulla bin Khalifa Al Khalifa said: "We are very pleased to deliver this set of financial results which reflect the efforts of our teams who have continued to be focussed on our strategic goals, which includes becoming a leading regional provider of digital services for both consumers and businesses, while continuing to implement the Company’s separation plans as per the NTP4 requirements."

“It remains a priority for the Board of Directors to achieve the highest possible returns as well as strive to enrich future returns, while ensuring the continuous and sustainable success of the company in the long run,” stated Shaikh Abdulla.

Batelco CEO Mikkel Vinter, who joined the company in May, said: "We are focussed on evolving and enhancing our solutions for our consumer and business customers with a strong emphasis on digitisation and the delivery of exceptional customer experience."

“Investment in 5G, Data Centres, enterprise solutions and digital revenue streams are among our key priorities and support our efforts which contribute towards the growth of the digital economy in line with the Kingdom’s vision,” he said.

Batelco’s International Operations have contributed 57% of revenues and 55% of ebitda for the first six months of 2019. Batelco continues the development and implementation of strategic actions to enhance the market position and operational performance of its international assets.

In the Maldives, Dhiraagu continues to foster its position as market leader with the Company’s high-speed broadband network now reaching 75% of households across the country connecting 58 islands with the state of the art fibre-to-the-home service.

Key goals for Batelco’s International operations for the rest of 2019 remains the enhancement of the value propositions for customers across its international footprint, while continuing with its digital transformation agenda and accelerating a cost efficiency programme.

Shaikh Abdulla said Batelco had the right combination of knowledge and experience across its teams, along with partnerships with major technology providers and additionally a clear vision for the future, "which positions us well to address current challenges and also to take advantage of opportunities in the evolving digital communications space."

“Based on our achievements for the first six months of 2019, we are confident that we have the correct strategies in place to seize market opportunities and build on our solid platform,” he added.-TradeArabia News Service